Japanese steelmaker Nippon Steel has selected Nagoya-based specialty steel fabrication company and plant engineering company Daido Steel to perform engineering work for its new electric arc furnace (EAF) project at its Setouchi plant in western Japan, the companies announced. The furnace itself will be supplied by Italian manufacturer Tenova.
The EAF will have a thermal capacity of 110 metric tons per charge and an annual production capacity of approximately 500,000 tons, with work scheduled to begin in the second half of the 2028-29 financial year.
Daido Steel will provide engineering services for the entire electric furnace plant, including the EAF and all peripheral equipment. The project is part of Nippon Steel's investment program to shift production from the blast furnace route to the electric arc furnace process.
Nippon Steel previously announced plans to expand domestic EAF capacity as part of its decarbonization strategy. The Setouchi project was selected for support under Japan's Green Transformation Promotion Act. The total investment is estimated at 140 billion yen ($920 million), of which 42.6 billion yen will be financed by the Japanese government.
